High inflation to persist globally into next year, Reuters poll shows

High inflation is expected to persist globally into 2027, according to a Reuters poll of economists. The latest survey indicates growing concern that rising energy costs, driven by the Middle East conflict, will lead to entrenched price pressures. While central banks have raised interest rates only a few times or not at all, further hikes could occur if inflation persists.

Crude oil prices, still above $100 a barrel, have surged more than 60 percent since the conflict began. Over $1 trillion in investment in artificial intelligence technology since last year has made some economies more resilient despite the cost of living pressures. Most central banks have kept interest rates unchanged, but more may be necessary if inflationary pressures broaden.

The poll reveals that inflation forecasts have risen for 2027, with Britain, the euro zone, India, and Brazil experiencing the most significant increases. Rising energy prices are influencing economic activity and political campaigns worldwide. Despite the complex inflation picture, economists have upgraded their growth forecasts for both this year and next year, albeit slightly lower than the International Monetary Fund's predictions.